Technicals | Jul 11 2024
By Tony Sycamore, Market Analyst, IG shares
The ASX200 trades 70 points (0.97%) higher at 7887 at 1 pm AEST.
The Australian stock market, the ASX200 surged 86 points (1.10%) from the opening bell this morning to a three-month high of 7902.6 – within a whisker (-8 points) of its all-time high of 7910.5 from early April 2024.
The rally followed another round of record highs on Wall Street, boosted by Fed Chair Powell’s comments overnight that the US economy is “no longer overheated” ahead of tonight’s all important US CPI update.
The ASX200 has enjoyed broad-based gains, with all eleven sectors rising – the standouts being the Real Estate (1.37%), Materials (1.29%) and IT (1.35%) sectors. At a stock level, CBA has continued to confound the short sellers as it hit a fresh record high of $130.30, joined by JB Hi-Fi as it traded to a record high of $66.33.
The up move is consistent with our view that the ASX200 has spent the past three months consolidating/correcting its gains from the late October 6751 low to the early April 7910.5 high.
A break above the all-time high at 7910.5 is needed to confirm the correction is complete and that the uptrend has resumed, targeting 8,000 as the next stop.
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